Forex Online Trading - Top 10 Golden Rules Numbers 1-4
These rules are essential for long term trading success and need to be in place from the very start of your trading. Trading is such a challenging way to spend your time that you will need to strap yourself in before you lift of because trading is potentially freeing, compelling and damaging in equal measure. Stick to the rules and keep safe.
Golden Rule 1.
Check your emotional state before you trade. If you are depressed, fed up, scared, distracted or in any other way in tip top emotional state then do not trade. Tempting as it may be your judgment will be clouded and your response to the trades, win or lose will be distorted.
Golden Rule 2.
Plan the trade. You must know front what strategy you are going to use and stick to it. Know how much time the trade will take. Make planning the trade part of the trade itself and part of your routine. If you fail to plan you plan to fail is a common quote and never more true than in Forex trading.
Golden Rule 3.
Trade the plan. The best way to describe this is to imagine that you are a robot that is executing a trading plan that has been well organised and Make no judgements on the plan just input the data and leave it. If you planned the trade as you should there should no thinking involved at this stage at all.
Golden Rule 4.
Record Everything. Get a spreadsheet and record all the details of the trade. It is essential that you have data to refer to as it obviously builds to record for the future. Information is power within many areas and the same for trading. Make this part of the trade too as much as the planning and make sure you do this every time. There is little more frustrating the knowing you could have done better if you had stuck to the plan! Get a notebook to and organise your note taking.
Although I have not listed all of them I have listed 4 of the top golden and shiny rules that will make you a better and more successful trader. The difference between success and failure comes in the execution of a plan. A poor plan, well executed can bring better results than a great plan poorly executed.
Golden Rule 1.
Check your emotional state before you trade. If you are depressed, fed up, scared, distracted or in any other way in tip top emotional state then do not trade. Tempting as it may be your judgment will be clouded and your response to the trades, win or lose will be distorted.
Golden Rule 2.
Plan the trade. You must know front what strategy you are going to use and stick to it. Know how much time the trade will take. Make planning the trade part of the trade itself and part of your routine. If you fail to plan you plan to fail is a common quote and never more true than in Forex trading.
Golden Rule 3.
Trade the plan. The best way to describe this is to imagine that you are a robot that is executing a trading plan that has been well organised and Make no judgements on the plan just input the data and leave it. If you planned the trade as you should there should no thinking involved at this stage at all.
Golden Rule 4.
Record Everything. Get a spreadsheet and record all the details of the trade. It is essential that you have data to refer to as it obviously builds to record for the future. Information is power within many areas and the same for trading. Make this part of the trade too as much as the planning and make sure you do this every time. There is little more frustrating the knowing you could have done better if you had stuck to the plan! Get a notebook to and organise your note taking.
Although I have not listed all of them I have listed 4 of the top golden and shiny rules that will make you a better and more successful trader. The difference between success and failure comes in the execution of a plan. A poor plan, well executed can bring better results than a great plan poorly executed.
David Marshall has looks for the best trading technology and the best mindsets to ensure trading success. Want more information on fx online trading? Just visit our site, http://fxonlinetrading.net.
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